Users Will Soon be Able to Recover Most of the 20 XRP Activation Fee
Summary
- Deletable Accounts amendment to pass on the XRP ledger
- Once passed users can close their XRP account recover most of the 20 XRP activation fee
Ripple’s XRP ledger is infamous for its 20 XRP activation fee. However, this may change as the Deletable Accounts Amendment will allow users to close out their XRP account and receive the activation fee (20 XRP) subtracted by the Owner’s Reserve (5 XRP).
After in development for over a year, Ripple developer lead Nike Bougalis and XRP YouTuber “JamesRuleXRP” have confirmed that the amendment has concluded development and is currently up for voting. At the moment, the amendment has 82.86% network consensus.
Activation Fee
Ripple created the 20 XRP activation fee to prevent users from creating multiple accounts and spamming the XRP ledger. The activation fee consists of a base reserve (20 XRP), which includes a 5 XRP Owner’s Reserve.
The XRP activation fee contributes to exchanges holding the majority of circulating Ripple supply. With many users unwilling to pay a non-refundable 20 XRP fee, billions of XRP are stored on exchanges that do not charge activation fees. With the Deletable Accounts Amendment, users will be able to recoup 75% of the activation fee upon account closing. This may result in a better XRP distribution with individuals opting to hold XRP in their own wallet rather than an exchange.
Deletable Accounts
Ripple C++ lead, Nik Bougalis began working on the code over a year ago.
If passed, the Deletable Accounts Amendment will allow users to recoup 75% of the activation fee if they decide to close their XRP account. This feature will allow greater freedom within the XRP ledger and better XRP distribution.
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